Plans to make mutual fund rules more investor and industry friendly: Sebi official
The Securities and Exchange Board of India (SEBI) is undertaking a comprehensive review of mutual fund regulations to make them more investor-centric and industry-friendly, a senior official said on Saturday."We are reviewing the entire mutual fund regulatory framework to enhance ease of doing business for all stakeholders, including the regulator," SEBI executive director Manoj Kumar said at the 17th Mutual Fund Summit organised by the Indian Chamber of Commerce (ICC) here.Existing regulations governing the sector are among the lengthiest and require simplification to keep pace with evolving investor needs and industry innovations, stakeholders said."The process has started and soon we will come out with draft regulations for feedback and consultation process before it is finalised," Kumar said without giving any timeline for the rollout of the new rules.Kumar outlined the regulator's strategic roadmap to strengthen India's securities market, with mutual funds positioned as a critical pillar in fostering inclusive financial growth and investor protection.A consultation paper on regulations which governs advisory functions in mutual funds is also in the pipeline.Addressing the event, Kumar said India has undergone major market transformations under SEBI's stewardship.These include the shift to an electronic trading ecosystem in 1998, followed by achieving 100 per cent dematerialisation of shares, making India the only jurisdiction globally to do so."The third transformation is unfolding now through the mutual fund revolution," he said, calling it a cornerstone of SEBI's "optimum regulation" approach, one that seeks balance among the interests of the regulator, the industry, and investors.While India's mutual fund industry has crossed Rs 72 lakh-crore in AUM and monthly SIP contributions have touched Rs 28,000 crore, the investor base remains limited to just five crore in a population of 140 crore, Kumar pointed out.SEBI is also actively reviewing scheme categorisation norms to make them more intuitive for investors, while ensuring all offerings remain "true to label" to prevent mis-selling.To offer wider choice to investors, SEBI has approved a new product category, referred to as SIF, aimed at investors with ticket sizes between Rs 10 lakh and Rs 50 lakh.Mutual funds were selected to manage these products given their established governance and handling of retail flows.Parallelly, SEBI has opened faster registration windows for Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) with similar offerings.Addressing industry concerns over stress test disclosures for mid- and small-cap funds, Kumar reaffirmed SEBI's disclosure-based regulatory model, stressing that informed investors are central to market resilience.While he acknowledged that some disclosure requirements may seem burdensome, he assured stakeholders that SEBI remains open to feedback and streamlining processes.He urged the industry to avoid situations that warrant regulatory intervention, saying, "Our goal is not to disrupt but to allow business to thrive."Highlighting the untapped potential in eastern India, Kumar said SEBI views West Bengal and the Northeast as strategic regions for mutual fund expansion, underscoring the need for targeted penetration efforts.Echoing this vision, AMFI chief executive V N Chalasani said India is transitioning from financial inclusion to financial well-being, where saving smartly and investing wisely will enable sustainable wealth creation.He cited the exponential growth of mutual funds post-2017, following SEBI's investor education mandate, which helped expand the investor base and improve financial awareness.However, Chalasani pointed out that India's mutual fund AUM still forms only about 20 per cent of GDP, compared to a global average of 65 per cent.He stressed the need for deeper financial literacy, especially in Tier 3 and 4 cities, where AMFI is focusing through school and university programmes, distributor expansion via India Post, and new product innovations aimed at mid-income investors."Every Indian can evolve from a saver to an investor and ultimately a wealth creator," he said, calling for sustained collaboration between regulators, industry, educators and investors to build an empowered, financially resilient India. PTI
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
17 minutes ago
- Business Standard
Sebi chairman urges stronger vigilance to defend markets from cyber risks
Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (Sebi), on Thursday stressed the need for constant vigilance, regular incident-response drills, and forensic readiness to guard against escalating cyber threats. Speaking at a cybersecurity training programme for regulated entities at the National Institute of Securities Markets (NISM), Pandey warned that even the perception of vulnerability can unsettle markets, irrespective of immediate financial losses. Recalling the 2010 Nasdaq breach — in which hackers accessed a system used by corporate boards to share confidential documents — he noted that while trading was unaffected, the incident 'deeply shook confidence'. Sebi has, in recent years, strengthened cybersecurity norms, mandated regular cyber audits, and tightened reporting on technical glitches across exchanges, clearing corporations, depositories, and market intermediaries. Safeguarding these 'market utilities', he added, is essential for capital formation, investor trust, and economic resilience. 'A small glitch in a trading algorithm can trigger market disruption in milliseconds. A misconfigured server can give malicious actors a way in. A compromised account can lead to damaging data leaks,' Pandey said, citing the 2012 Knight Capital fiasco that caused $440 million in losses due to faulty trading software. He stressed that internal lapses — such as inadequate checks, rushed deployments, or overlooked processes — can be as damaging as external threats. 'Technology risk isn't always about defending the gates. Sometimes it's about ensuring the castle's own walls are strong,' he remarked. Pandey also underlined the human factor as a critical line of defence, noting that negligence and phishing attacks often open the door to breaches. 'Proactive measures reduce both the probability and the impact of incidents. Reactive measures merely limit damage after trust has already been dented,' he said. In closing, Pandey told the participants that their quiet efficiency would likely never make headlines — but that the absence of crisis is their greatest professional achievement. 'Behind the seamless flow of billions in our markets lies your invisible vigilance.'
The Hindu
17 minutes ago
- The Hindu
Chief Minister inaugurates Namakkal District Central Cooperative Bank
Chief Minister M.K. Stalin inaugurated the Namakkal District Central Cooperative Bank through video conferencing on Thursday. The Chief Minister inaugurated the bank from Chennai, and at the function held in the bank in Namakkal, MPs Rajeshkumar and Madeswaran, MLAs Ramalingam and Ponnumsamy, District Collector Durgamoorthi, and officials participated. The bank will function with a staff strength of 159, including a managing director, a principal revenue officer, a general manager, two assistant general managers, 23 managers, 34 assistant managers, 93 assistants, and four office assistants. The Namakkal District Central Cooperative Bank has been bifurcated from the Salem District Central Cooperative Bank. The has 746 affiliated societies, including 165 Primary Agricultural Cooperative Credit Societies, four Hill Tribes Large Sized Multipurpose Cooperative Societies, 393 Milk Producers Cooperative Societies, 86 Weavers Cooperative Societies, 26 Employees Cooperative Credit Societies, three Agricultural Producers Cooperative Sales Societies, five Cooperative Urban Banks, seven Primary Cooperative Agricultural and Rural Development Banks and one Cooperative Sugar Mill. Namakkal District Central Cooperative Bank has started its operations with a share capital of Rs. 76.10 crore, deposits of Rs. 1,826.56 crore and outstanding loans of Rs. 1,636.07 crore. In the financial year 2024-2025, this bank has provided crop loans of Rs. 625.81 crore to 55,583 farmers, cattle maintenance loans of Rs. 117.86 crore to 14,346 farmers, medium-term loans of Rs. 13.78 crore to 1,324 farmers, and jewellery loans of Rs. 1,489.81 crore to 1,64,969 individuals. The bank also provided Rs. 162.65 crore as loans to 1,878 Women's Self-Help Groups and a Rs. 2.69 crore loan to 473 differently-abled persons. Under the special scheme of the Tamil Nadu Government, Rs.34 lakh was provided for the Kalaignar Kanavu Illam Scheme, and Rs.82 lakh under the TAMCO scheme. Namakkal District Central Cooperative Bank has installed ATMs to facilitate the customers withdrawing money. Similarly, through mobile ATMs and PoS machines, services are provided to the customers and all branches have safety lockers..
Economic Times
17 minutes ago
- Economic Times
If Mahatma Gandhi wasn't India's first choice for banknotes then how did he become Rupee's forever face?
Synopsis Initially rejected, Mahatma Gandhi's image wasn't always destined for Indian currency. Post-independence, the Lion Capital of Ashoka was favored, symbolizing the new republic. Gandhi's presence began with a 1969 commemorative note, becoming permanent in 1996. Despite debates and proposals for other figures, Gandhi remains a constant reminder of India's core values on every rupee. Mahatma Gandhi Walk into any shop in India, hand over a crumpled banknote, and you'll see a familiar face smiling back, bespectacled, serene, and instantly recognisable. Mahatma Gandhi doesn't just appear on our currency; he has become a quiet constant in our daily exchanges, silently passing through millions of hands each day. But the story of how he ended up there is far from straightforward. In fact, in the first flush of independence, Gandhi's portrait was rejected for Indian on 14 August 1947 brought independence, but not yet a new currency. For a brief period, the Reserve Bank of India (RBI) continued issuing colonial notes bearing King George VI. Behind closed doors, discussions began on what a truly Indian banknote should look like. The early idea was simple, replace the King's portrait with that of the Father of the Nation. Designs were prepared with Gandhi's image. Then came a surprising turn. As the RBI recounts, the 'final analysis' shifted towards a non-personal symbol, the Lion Capital of Ashoka at Sarnath. It was felt this emblem, drawn from India's ancient heritage, better captured the idea of a modern republic. So, in 1949, the new Re. 1 note appeared with the Lion Capital watermark, and Gandhi's portrait was the following decades, Indian notes became miniature showcases of the country's identity and ambitions. Tigers, deer, and peacocks symbolised natural heritage. The Konark Wheel, Brihadeeswara Temple, and Hirakud Dam spoke of cultural pride and industrial progress. The Aryabhatta satellite hinted at a future in science and space. Currency in the 1950s and 60s was not about a single leader, it was about the nation as a wasn't until Gandhi's birth centenary in 1969 that he made his first official appearance on a banknote. This commemorative design showed him seated, with Sevagram Ashram in the background, a gentle nod to his life of simplicity and service. The issue was special and short-lived, not yet a permanent feature of Indian currency. The real turning point came in 1987. The Rajiv Gandhi government reintroduced the Rs 500 denomination, and for the first time on a regular note, Gandhi's portrait appeared on its obverse. Still, he wasn't on every note. That came in 1996, when the RBI launched the Mahatma Gandhi Series, redesigned notes with improved security features and, for the first time, Gandhi's smiling face on all 2016, the 'New Series' kept Gandhi firmly in place while refreshing colours, sizes, and themes. From Rs 10 to Rs 2,000, he had become inseparable from the the years, there have been calls to share this space. Some have suggested Jawaharlal Nehru, Subhas Chandra Bose, Sardar Patel, or even religious figures like Goddess Lakshmi and Lord Ganesha. In 2016, the government clarified that a high-level committee had decided 'there is no need to change Mahatma Gandhi's photo on the currency notes.' Others have been honoured in different ways, Dr B. R. Ambedkar, for instance, was commemorated with special Rs 125 and Rs 10 coins. In 2022, a proposal from the Aam Aadmi Party to add Lakshmi and Ganesha sparked debate, with supporters citing prosperity and detractors warning against politicising or communalising currency design. For all the discussion, Gandhi remains unshaken on our notes. As Martin Luther King Jr. once said, 'Gandhi was inevitable… we may ignore him at our own risk.' On the rupee, his presence is more than decoration, it's a reminder of the values he championed: truth, non-violence, and unity in time we pass a note across a counter, we're not just exchanging money. We're handing over a piece of history, one that almost didn't have Gandhi's face, but now, perhaps fittingly, cannot be imagined without it.
